TEGNA INC (NYSE:TGNA) – A Dividend Stock Worth Considering

TEGNA INC (NYSE:TGNA) stands out as a potential candidate for dividend investors, according to our screening criteria. The company combines a solid dividend profile with decent profitability and financial health, making it an interesting option for those seeking income-generating stocks.

Dividend Strengths

• Attractive Yield: TGNA offers a yearly dividend yield of 2.99%, which is above the S&P 500 average of 2.40%. Within its industry, the company outperforms 80% of peers in terms of dividend payments.
• Consistent Growth: The dividend has grown at an annual rate of 11.34% over the past five years, reflecting a commitment to returning value to shareholders.
• Sustainable Payout: Only 17.48% of earnings are allocated to dividends, indicating room for future increases without straining finances.
• Reliable Track Record: TGNA has paid dividends for at least 10 years and has not reduced payouts in the past five years.

Profitability & Financial Health

• Strong Profit Margins: TGNA’s Profit Margin (15.21%) and Operating Margin (24.66%) rank among the best in its industry, outperforming 93% and 98% of peers, respectively.
• Solid Returns: The company delivers a Return on Invested Capital (9.33%) above industry averages, reinforcing efficient capital use.
• Balanced Debt: With a Debt-to-Equity ratio of 0.83, TGNA maintains reasonable leverage, though investors should monitor its Altman-Z score (2.85), which sits in a neutral zone.

Valuation

TGNA appears undervalued with a P/E ratio of 5.63, significantly lower than both the industry (40.90) and the S&P 500 (26.35). This suggests the stock may be priced attractively relative to earnings.

For a deeper dive into TGNA’s financials, review the full fundamental report here.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.